Gujarat textile hub faces cotton crunch and rising input costs

Shrinking cotton availability, higher power and other input costs, and US Section 301 tariffs are squeezing margins across Gujarat’s textile sector—a key sourcing base with nearly 25% of India’s spinning capacity.

— Filed Mon, 27 Jul, 2026, 15:58 IST · Source Apparel Resources India · Updated

Gujarat’s textile industry faces margin pressure from shrinking cotton supplies, rising input and power costs, and US Section 301 tariffs. The disruption affects a major national sourcing hub, with implications for apparel manufacturing costs and retail supply chains.

Why this matters

No related recent signals are provided. The current signal highlights margin pressure across Gujarat’s textile sourcing base as cotton supply and operating costs worsen.

Retail-company signals are accelerating, up 572000% QoQ.